As your parents get older, there may be an added responsibility of looking after their finances as well as their health. Here are a few ideas on how to handle a touchy subject.
Maintain their independence
Invariably there comes a time when “senior moments” become more regular and your parents will need your help. However, don’t take control of their finances until you really have to. The key is to let your parents know that you are not being pushy but you just want to ensure that they are financially OK.
Talk about their Will
A will is something everyone should have, regardless of age. The best way to avoid an edgy discussion is to say you don’t want to know what’s in thewill.
You just need to know they have one that has been recently updated and where it is located. If there isn’t one, then suggest that they see a lawyer and get it prepared.
Regular reviews
When your parents reach retirement age, it is a good idea to have a regular update of their financial situation. You may want to coincide it with a key date such as a birthday or Christmas.
All you need to know are the basics such as where they keep their financial documents, a list of their assets (including account numbers), and the names and contact details of their key advisers.
Enduring power of attorney
Having a power attorney is a bit like an insurance policy. You don’t need to worry about until you really need it and by then it is usually too late. For peace of mind, suggest to your parents that they should nominate someone close that they trust to take control of their finances should they become incapacitated.
Tax planning
The taxman invariably becomes one of the main beneficiaries when someone dies, purely because of poor tax planning. By seeking quality tax advice now, you can avoid quite a few hassles in the future.
Advice is general in nature. Always seek further financial advice before making financial decisions.
